Putting a virtual lock on fuel
FT. LAUDERDALE . Fuel remains one of the most costly items on a fleet’s bottom line – typically ranked number two, right behind driver wages and benefits – so carriers are deploying an ever-widening variety of methodologies to keep fuel costs under tight control.
“While negotiated discounts are a good start, making smarter purchases within your network of fuel stops will save you even more money,” said Matt Braslavsky, information technology (IT) director for TL carrier CalArk International. “You also save on making cheaper fuel purchases – you feel that on your bottom line immediately.”
During a presentation here at Manhattan Associates “Momentum 2010” user group meeting, Braslavsky and Nick Cook, vp & CIO for refrigerated carrier FFE Transportation, stressed that even tiny savings in fuel costs on a per-gallon basis can reap big savings for fleets.
CalArk, for example, operates 650 tractors and 2,000 trailers nationwide – consuming roughly one million gallons of diesel per month. Braslavsky said just saving one penny per gallon translates into $10,000 in savings per month on the company’s fuel bill.
“Right now we’re saving between 3.5 to 4 cents per gallon through enhanced fueling and routing optimization,” he noted, primarily by “locking down” CalArk company driver fuel cards so they can only purchase a set amount of fuel at only specific locations.
“It sounds brash and harsh to do that, but it’s the only way we found to maximize our fuel savings,” Braslavsky said, noting that the carrier could only achieve 45% compliance with fueling and routing directives prior to the lock down. Post lock-down, compliance reached 95%, he added.
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© 2012 Penton Media Inc.















